Statistics Question
Question #5:
16.
1.
Let is defined as the population mean of the lower class participants, and is defined as the population mean of the upper class participants. The claim of the test is that there is a significant mean difference between the two economic populations. The hypothesis is,
Null hypothesis:
Alternative hypothesis:
The pooled variance is,
The test statistic is,
The test statistic is 2.25.
Computation of critical value:
The critical value of t-distribution at 22 degrees of freedom can be obtained using the excel formula “=T.INV.2T(0.05,22)”. The critical value is 2.0739.
Decision rule:
If test statistic > critical value, then reject the null hypothesis. Otherwise, do not reject the null hypothesis.
Conclusion:
The test statistic (2.25) is greater than the critical value (2.0739).
Based on decision rule, reject the null hypothesis.
Thus, there is sufficient evidence to conclude that there is a significant mean difference between the two economic populations.
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